Reason for 'Stop-Loss should be less than Limit Price

Why am I getting an error stating 'Stop loss should be less than limit price'?

The error 'Stop loss should be less than limit price' is a protective measure ensuring your trades are logically consistent. When placing a Buy order:
  1. Limit Price: Represents the maximum price you're willing to pay for a stock.
  2. Stop-Loss: Acts as a safeguard, setting a price to sell the stock if it starts moving against your expectations.
Given this, it's important that the stop-loss (selling price) be set lower than the limit price (buying price). For instance, if purchasing 100 shares of SBIN Ltd. at a limit price of ₹500, setting a stop-loss at ₹480 ensures you'll automatically sell if the market price dips below ₹480, protecting against potential larger losses.



    • Related Articles

    • What is the stop-loss trigger price?

      Stop-loss orders are designed in such a way that the order remains inactive until the last traded price reaches the limit order price. The stop-loss trigger price enables the user to define at what price the stop loss order should get activated. Once ...

    • Why am I getting an error stating "Limit price should be in multiples of 0.05"?

      When placing an order in Equity and Equity Derivatives, it's essential to ensure the limit price aligns with specific increments to maintain market stability and orderliness. As such, on FYERS, the limit price must be set in multiples of 0.05. If ...

    • Can I place SL-M (Stop Loss-Market) and SL-L (Stop Loss-Limit) orders with Quick Trade?

      Yes, Quick Trade supports both SL-M (Stop Loss-Market) and SL-L (Stop Loss-Limit) orders for Intraday trades. Here’s how each works: SL-M (Stop Loss-Market): This order type triggers a market order once the stop-loss price is reached, ensuring that ...

    • Can I place a trailing stop-loss in FYERS?

      Yes, you can use the Smart Trail feature in FYERS to place a trailing stop-loss. This feature helps you manage risk by automatically adjusting your stop-loss as the market moves in your favour, while also allowing you to define a target price. Smart ...

    • What is a stop-loss order?

      It is an order to exit an open position when it reaches a specified price. These orders are designed to limit the investor’s loss.